Pearson flags tough trading

SimonZekaria

LONDON--Pearson PLC (PSON.LN) Thursday said it continues to face tough trading this year as the U.K.-based publisher and education specialist prioritizes digital learning and driving sales in emerging economies.

The publisher of the Financial Times, which generates about 60% of its revenue in the U.S., said it expects to report full-year adjusted operating profit, before restructuring charges, of about GBP865 million ($1.43 billion), lower than 2012's GBP936 million. It previously said the metric would be lower year-on-year.

It also forecasts full-year adjusted earnings per share, also before restructuring, at 83 pence, broadly in line with 82.6 pence recorded in the same period a year earlier.

Pearson said it faced pressures throughout 2013 in North America and the U.K. It also flagged lower margins for its North American higher education business in the key fourth quarter.

"Our trading and financial performance has been weaker than expected, particularly in North America," said Chief Executive Officer John Fallon.

Trading conditions are "still challenging" in 2014, added Mr. Fallon.

At the end of October last year, Pearson issued a warning on its full-year profit, in part due to weak demand for college textbooks in the U.S. It also said earnings would be hit by about GBP25 million from changes to accounting of Penguin Random House, its publishing joint venture with Bertelsmann SE & Co. KGaA
BRT

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.